The effects of foreign policy on the economies of the West Germany and the GDR in the 1950s

This bachelor thesis deals with the effects of foreign policy on the economies of the Federal Republic of Germany and the German Democratic Republic (GDR) in the 1950s. The aim of the thesis is to compare the effects of the different orientations of the states within a world divided by the Iron Curtain. In the context of this topic, answers were sought to the sub-questions: How was West Germany influenced by the Western occupying powers, the adoption of the Marshall Plan and the entry into the European Communities? On the other hand: How was the GDR influenced by the Soviet Union, the setting up of a centrally planned economy and the entry into the Council for Mutual Economic Assistance (COMECON)? To answer these questions, the theoretical part of the thesis first describes the circumstances of the formation of the two German states, their functioning, and the establishment of foreign relations in the 1950s. The practical part then analyses the GNP, industry, agriculture and foreign trade of the two states. The thesis shows that both states were influenced by the occupying powers before their formation and this caused their different orientations after their formation in 1949. West Germany was influenced to join the Western bloc by the Marshall Plan and by its entry into the European Communities and this affected its economy and foreign trade structure. The GDR was influenced by the Soviet Union, by the adoption of a planned economy and by the COMECON, which had an impact on its economy, industrial production structure and foreign trade.